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Question #1: Assume you deposit $2,000 in an account today that pays 6% interest compounded annually. How much money will you have in 4 years?
Question #1: Assume you deposit $2,000 in an account today that pays 6% interest compounded annually. How much money will you have in 4 years? a) Complete using the long-form solution (i.e., show the year by year growth in the account). b) Complete using the formula solution (show the formula and your answer). Question #2: Assume you will receive a gift of $5,000 in four (4) years. What is its present value assuming a 6% discount rate? a) Complete using the long-form solution (i.e., show the year by year growth in the account). b) Complete using the formula solution (show the formula and your answer)
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